Which payment system uses a fixed amount reimbursed per day for patient care?

The payment system that uses a fixed amount reimbursed per day for patient care is known as the per diem payment system. This method is structured to provide healthcare providers with a predetermined daily rate for each patient, irrespective of the type or volume of services rendered during that day.

Per diem payments are commonly utilized in settings such as hospitals and long-term care facilities, where the daily care requirements of patients can vary. This system simplifies budgeting and reimbursement processes, as it guarantees a set amount per day based on the patient’s status or care level rather than the specific services delivered.

In the context of healthcare reimbursement, the per diem approach encourages efficiency, as providers are incentivized to deliver necessary care within the constraints of the daily rate. This can help manage costs while ensuring that patient care remains a priority. By providing a fixed amount per day, it also aids in predictable financial forecasting for both providers and payers.

In contrast to other payment models, such as case rates that bundle payments for a specific episode of care or per procedure payments that reimburse for individual services rendered, per diem payments focus on the daily continuum of care for the patient. Capitation, on the other hand, involves a fixed payment per patient for a specified period, making it fundamentally different